Aquaculture Insurance And Reinsurance: Varied Conditions Require Tailored Solutions

摘要

Risk management is as vital to the aquaculture industry as to any other industry. Perhaps more so, for aquaculture deals with living organisms that by their nature can be prone to unpredictability, randomness and fortuitous events. The organisms do not always respond to our human desire to control their environments. As the importance of aquaculture grows (Figure 1), particularly in emerging markets, the industry will require well-planned insurance programs that keep the balance sheets of aquacultureinvestments, big or small, in line with financial feasibility. By increasing scale in order to support demand, insurance solutions backed by the reinsurance market can allow lesser fish farms to function among the bigger players.